HMRC TAX REGIME

Freelance IT workers in the UK have expressed concern about claims that the government plans to force contractors onto the payroll of their clients after just one month of service. It was reported over the weekend that Chancellor of the Exchequer George Osborne would crack down on personal service firms during his spending review statement to MPs Lobby group IPSE – which represents Blighty freelance and self-employed folk – told The Register that it had been unaware of a one-month rule that…

Government legislation to deny Travel & Subsistence tax relief for contractors and freelancers will have a significant impact on British business and the very many companies which rely on the flexible workforce for its expertise and skills.  This warning is issued from The Freelancer & Contractor Services Association (FCSA), the UK’s leading independent trade body for umbrella employers and accountancy service providers supporting the flexible workforce.  For the past 18 months, FCSA has been campaigning on behalf of contractors, recruiters…

The vast majority of IR35 disputes start as Employer Compliance Reviews and then escalate to status investigations of the contractor’s engagement(s). Whilst the mechanics of the IR35 investigation which follows may not change unduly in the future, recent amendments to the way contractors report information on their returns to HMRC combined with the new powers that HMRC will be introducing with effect from April 2009 could bring about a distinct advantage to HMRC for their enquiry work into IR35.